The Colorado House has given preliminary approval to the Fiscal Year 2025-2026 budget package, highlighting bipartisan efforts to protect critical investments in K-12 education, Medicaid, and other public services. Despite difficult financial constraints, the $43.9 billion budget includes strategic reductions that ensure essential programs continue, particularly those serving families, students, and vulnerable communities.
Key Highlights of the Budget
K-12 Education Remains a Priority
The budget builds on Colorado’s recent efforts to enhance public school funding. Since the 2018-19 school year, per-pupil funding has grown significantly—from $8,123 to an estimated $11,852 in the 2025 school year. This year’s package increases overall K-12 funding by more than $250 million. HB25-1320, the 2025 School Finance Act, directs $150 million from the General Fund into schools, reinforcing Colorado’s commitment to education despite declining enrollment in some districts.
Tuition Cap for In-State College Students
To improve access to higher education, the budget includes a 3.5% cap on tuition increases for in-state students. This measure continues the trend of limiting college cost growth and ensuring affordability for students pursuing higher education within Colorado.
Continued Medicaid Support
Maintaining Medicaid Services
The House rejected proposed Medicaid cuts and instead secured a 1.6% increase in provider rates. It also preserved Medicaid eligibility standards, maintaining access to critical health care services for low-income individuals and families.
Dental Services and Early Intervention
Colorado residents on Medicaid will continue to receive dental care coverage. Additionally, the state has allocated $4 million to maintain early intervention services for infants and toddlers with developmental needs in FY24-25, and a further $16.5 million to continue the program into FY25-26.
Investments in Child and Family Programs
Child Care Assistance Program Funding
The budget dedicates $15 million in FY24-25 and $10 million in FY25-26 to strengthen child care access for low-income families. The funding aims to reduce long waitlists and reopen enrollment in areas where it had previously been frozen.
Healthy School Meals for All
The legislature has ensured full funding for the Healthy School Meals for All program through the end of the current year. A ballot measure set for November 2025 may determine the program’s long-term future, pending voter approval through HB25-1274.
Support for Anti-Poverty Programs
Programs such as TANF and SNAP, administered by local governments, will continue to receive support. These programs offer critical assistance to Colorado’s most vulnerable populations.
Environment and Infrastructure
State Parks and Water Conservation
The budget earmarks $52 million to maintain and enhance state parks and habitats. Funding for water conservation projects has also been preserved to protect Colorado’s long-term water resources.
Civil Liberties and Security
Election Security and Legal Safeguards
The FY 25-26 budget includes $410,000 to maintain local election security infrastructure, especially in light of reduced federal support. Additionally, $604,000 has been allocated to the Attorney General’s Office to counter federal actions that may threaten Colorado’s autonomy or funding.
Two key bills—SB25-269 and HB25-1321—set aside $4 million to protect Colorado against potential federal grant freezes or policy disruptions.
Conclusion
Despite a challenging $1.2 billion budget gap, Colorado’s FY 25-26 budget package demonstrates a strong bipartisan commitment to preserving key public services. By prioritizing investments in education, healthcare, child welfare, and civil liberties, the state aims to ensure stability and opportunity for residents across all demographics.
